Saks Global, the parent organization behind the luxury department store Saks Fifth Avenue, proceeded with a Chapter 11 bankruptcy petition on Tuesday to initiate a court-supervised reorganization of its business. This legal filing took place at the U.S. Bankruptcy Court for the Southern District of Texas and marks the initial significant retail bankruptcy case of 2026.
This move follows a tumultuous period for Saks Global, notably in the wake of its substantial acquisition of rival luxury retailer Neiman Marcus in 2024, which carried a considerable debt burden. Efforts to integrate and leverage the combined entities for greater market influence and cost negotiations have faced serious headwinds.
Earlier in January, Saks Global experienced considerable executive turnover. Marc Metrick vacated the chief executive officer role, passing leadership to Richard Baker, the company’s executive chairman. Yet, Mr. Baker’s tenure as CEO was brief, ending less than two weeks later with his departure from the position. This rapid leadership transition preceded the announcement of bankruptcy protection.
Underlying these corporate changes are broader shifts in American consumer behavior within the luxury retail market. There has been a noted decline in enthusiasm for traditional luxury stores, as shoppers express dissatisfaction with heightened prices and perceive a decline in product quality. Furthermore, an increasing number of luxury consumers prefer purchasing directly from brands via direct-to-consumer channels, bypassing department stores altogether.
The broader economic environment has compounded the challenges. Consumer confidence has deteriorated amid concerns about economic management, rising unemployment risks, and persistent inflationary pressures. A recent CNN poll indicates that a majority of Americans attribute blame for economic difficulties to the federal administration. Inflation held steady at 2.7% in December 2025, maintaining the strain on household budgets.
In its announcement, Saks Global noted, "With support from its key financial stakeholders, Saks Global has commenced voluntary chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate its ongoing transformation." Along with the filing, the company disclosed changes in executive leadership. Richard Baker is stepping away from the CEO position, succeeded by Geoffroy van Raemdonck, the former head of Neiman Marcus, who will lead through the bankruptcy proceedings.
Mr. van Raemdonck expressed optimism regarding this pivotal phase, describing it as a "defining moment" offering a substantial opportunity to fortify the company’s foundation and prepare it for future growth. He emphasized a commitment to collaboration with new leadership and employees alike, prioritizing the needs of customers and luxury brand partners as Saks Global undergoes restructuring.
The formation of Saks Global followed Hudson's Bay Company's strategic acquisition of Neiman Marcus for $2.65 billion in 2024, aiming to create a dominant luxury retail entity capable of regaining influence over brand negotiations and attracting shoppers back to physical stores. Despite these intentions, the combined company struggled with cash flow, reportedly encountering difficulties in meeting vendor payment obligations, which in turn strained supply relationships and fueled early bankruptcy concerns.
Financially, Saks Global revealed securing $1 billion in debtor-in-possession financing to sustain operational liquidity and underpin turnaround efforts during bankruptcy. Additionally, a bondholder group has pledged to provide a further $500 million in financing contingent on emergence from bankruptcy protections.
This filing marks a critical juncture as Saks Global seeks to rebound from operational and financial challenges amid a shifting luxury retail landscape and economic uncertainties. The company’s ability to navigate the restructuring process will be closely observed by stakeholders and market participants.